Macro 1 - IS or the LM curve Please explain c Based on your...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
In explaining the bill to cut taxes, the President is quoted as saying, “When people have more money, they can spend it on goods and services.” a. In the IS - LM model, will a tax cut change the money supply in the economy? Why or why not? b. In the IS - LM model, does a tax cut shift the
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: IS or the LM curve? Please explain. c. Based on your answers in a and b, how can you reconcile the President's statement regarding the bill to cut tax with economics? Can you suggest how his statement could be modified to be consistent with the IS-LM model?...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern